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Tesco exists South Korea Case study Contents

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Added on  2020-04-21

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Running Head: CASE STUDY- TESCO EXISTS SOUTH KOREA Case Study 6 Tesco exists South Korea Case study Tesco exists South Korea Case study Contents Introduction 3 Drivers of Globalisation 3 Consumer Demand 3 Rapid economic Growth 4 Easing of government regulations 4 Strategic Partners 4 VUCA in context of Tesco case study 5 Volatility 5 Uncertainty: 5 Complexity 5 Ambiguity 5 Analysis of growth and performance 6 Joint Venture 6 Localizing Stores 6 Supply Chain Management 6 Strong Branding 7 Tesco

Tesco exists South Korea Case study Contents

   Added on 2020-04-21

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Running Head: CASE STUDY- TESCO EXISTS SOUTH KOREATesco exists South KoreaCase study
Tesco exists South Korea Case study Contents_1
Case Study 2ContentsIntroduction...........................................................................................................................................3Drivers of Globalisation........................................................................................................................3Consumer Demand............................................................................................................................3Rapid economic Growth....................................................................................................................4Easing of government regulations.....................................................................................................4Strategic Partners...............................................................................................................................4VUCA in context of Tesco case study...................................................................................................5Volatility............................................................................................................................................5Uncertainty:.......................................................................................................................................5Complexity........................................................................................................................................5Ambiguity..........................................................................................................................................5Analysis of growth and performance.....................................................................................................6Joint Venture.....................................................................................................................................6Localizing Stores...............................................................................................................................6Supply Chain Management................................................................................................................6Strong Branding................................................................................................................................7Tesco exists from South Korea..............................................................................................................7Conclusion.............................................................................................................................................8References.............................................................................................................................................9
Tesco exists South Korea Case study Contents_2
Case Study 3IntroductionTesco PLC is a British multinational grocery and a merchandise retailer, founded in 1919 by Jack Cohen in London. It is considered as the third largest retailer in the word as per its profits. Tesco is listed on London Stock Exchange and is an integral part of the FTSE 100 Index (Tesco plc, 2017). In 1999, Tesco entered South Korea as a joint venture, partnering with Homeplus, a unit of Samsung Corporation. Within a few years, it had achieved the market leadership and became the most successful international retailer. It operated a huge number of supermarkets, hypermarkets and also convenience stores. Doing business in South Korea proves to be the most successful international business of Tesco in terms of revenue. Although gaining success in South Korea, Tesco decided to exit from it because of the changes occurred in the operating environment of Korea due to the laws passed by the Korean government and the loss of market share in UK. This report contains an analysis of the globalisation drivers, growth and performance of the company and the reasons for the exitof the company.Globalisation and InternationalisationGlobalization refers to the integration of many national economy into one global economy. It refers to the interaction of people through international flow of money and easy migration (Baylis, Owens and Smith, 2017).Internationalisation means the increasing involvement of firms and enterprises in the international markets. It refers to increasing international relations, trade, alliances among thenations (Collinson, Narula and Rugman, 2017).Drivers of Globalisation There are many key factors which are responsible for the growth of globalisation known as drivers of globalisation. These drivers directly or indirectly affect the industry’s performance. The main drivers are cost drivers, market drivers, competitive drivers and technological drivers. The globalisation drivers which became the reasons for Tesco’s expansion and exit from South Korea are consumer demand, rapid economic growth, easing of government regulation and strategic partners (Dobbs, Manyika and Woetzel, 2016).Consumer Demand: One of the main globalisation driver is demand of the customer, on the basis of which every company runs its business. Tesco expanded its business by operatingaccording to the demand of the Koreans and their way of living. The company localises its stores and products and use such formats which attracts a large number of people. It opens its
Tesco exists South Korea Case study Contents_3

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